The role of Preferential Trade Agreements (PTAs) in facilitating global production networks

Kazunobu Hayakawa and Nobuaki Yamashita

No 280, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper examines the effects of preferential trade agreements (PTAs) in facilitating international trade flows connecting production networks. We consider over 250 PTAs with trade flows distinguished into parts and components and final goods for the period 1979-2008. The gravity equation estimates suggest that the concurrent year effects of PTA formation on trade in parts and components are unseen, whereas PTAs have positive and pervasive effects on both types of trade flows 6 and 9 years after the PTA formation.

Keywords: International trade; International agreements; Preferential trade agreements; Regional trade agreements; Expansion strategy of multinational enterprise; Gravity equation (search for similar items in EconPapers)
JEL-codes: F14 F15 F53 (search for similar items in EconPapers)
Date: 2011-02
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (16)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 280. 2011-02

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